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insurance exchange

An insurance exchange is an entity providing a marketplace for insurance coverage that is generally unavailable elsewhere for unusual or nonstandard risks.

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insurance exchange

An insurance exchange is an entity providing a marketplace for insurance coverage that is generally unavailable elsewhere for unusual or nonstandard risks.

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Unlike insurance companies, however, insurance exchanges do not underwrite insurance coverage. Rather, they are nonprofit organizations that oversee its underwriting members or "syndicates." In this capacity, exchanges receive premiums, issue policies, handle claims, supervise underwriters, and monitor their solvency. Lloyd's of London is the world's foremost insurance exchange.